Barclays defends Barrett 's step up

The pledge came in a letter rushed out to the bank's 888,000 shareholders defending the decision to promote chief executive Matt Barrett to chairman in defiance of best boardroom practice.

Existing chairman Sir Peter Middleton said: ?I wanted to write to shareholders personally to explain how we have arrived at this important decision.‘

The speedy response is in sharp contrast to the announcement of Barrett's elevation four weeks ago, when the bank insisted it did not need to justify its decision until the annual report in March 2004. Middleton pointed to Barrett's international experience, his deep and broad knowledge of financial services and his commitment to shareholder value.

He added: ?It is the obligation of the board to appoint as chairman the individual who, in its opinion, is best qualified to serve shareholders.‘

The letter, produced at a cost of £170,000, did not address directly shareholder concern that, as a former dominant boss, Barrett would exercise too much sway over successor John Varley. But Middleton described the relationship between the two men as ?excellent‘.

Sir Nigel Rudd, the Boots chairman, is one contender to become senior non-executive, though Barclays is under pressure to bring in fresh non-executives.